Group mediclaim insurance policy for employees In India – How It Works  

Most people among the working class in India are unable to meet their individual and family medical needs because of the high and constantly rising costs of medicines. A group mediclaim insurance policy for employees is the perfect solution for employees facing such problems. Group Mediclaim insurance policy for employees is designed to take care of expenses incurred during the medical treatment of employees and their family members. If they have to undergo hospitalisation because of an illness or an accident, the Mediclaim policy for employees has them covered. 

Group mediclaim insurance policy for employees: key features and benefits

Group Mediclaim insurance policy for employees is a type of health insurance plan provided by the employer to their employees. Such policies are beneficial to both the employers and employees. Employers can bring all their employees under a common health insurance plan and save money. Employees can be assured of support for their individual and family healthcare needs and need not worry about organising funds to meet steep medical care costs. Many organisations offer Mediclaim policy at a minimal or no cost to the employees. 

The Coverage 

Under the group mediclaim insurance policy for employees, all the employees of an organisation are covered under the plan. A company with more than 7 employees can buy a group health coverage plan that covers all its employees. 

The Premium 

The premium for the group mediclaim insurance policy for employees is deducted from their wages. As the risk is divided among many people, the premium works out to a small percentage of their salary. Not all employees and their families fall ill. The risk is fairly evenly spread, making the policy easily affordable to all employees. 

NOTE: However, an employer can also sponsor the group health coverage plan for his employees himself without deducting from the wages. It can even boost his teams’ morale and increase the chances of retaining the talent.  

Policy Ownership 

As the company pays the premium on behalf of the employees, the policy will be in the company’s name or in the name of the employer. 

How Is The Policy Updated? 

The employer is required to remove the names of those who are no longer with the company because of reasons such as retirement, resignation, or termination of service. All those who are on the current rolls of the company are automatically included in the Mediclaim Policy for Employees. 

What Are The Advantages of the Policy? 

Some of the key advantages of being under the cover of a group medical insurance plan are: 

Group mediclaim insurance policy for employees 

Comprehensive Individual Coverage 

Employees can enjoy comprehensive health insurance coverage under this insurance plan. They are adequately covered for pre-hospital and post-hospital care, daycare costs, OPD expenses, domiciliary care, and other similar expenses. 

Comprehensive Family Coverage 

All the dependent family members of the employee also get medical insurance benefits under the group medical insurance plan for employees only when the company has taken it. If any of your family members, including dependent parents, need hospitalisation or professional medical care following an illness, accident, or surgery, you can claim coverage for their medical costs too.

Automatic Initiation 

You are not required to fill in individual forms and make separate applications to avail the group health insurance cover. The health cover begins the moment when HR submits employee’s information to insurance company. Your company owner or the department handling the task will do all the heavy lifting in this regard. You just have to provide the data they require to complete the documentation formalities. 

No Waiting Period 

For employees joining an organisation, there is no waiting period for getting insurance coverage. You can enjoy the benefits of the group health insurance almost immediately upon joining. You will get adequate cover for any pre-existing illness and in special circumstances such as maternity benefits. 

No Policy Renewal Reminder or Hassles 

While individual policyholders have to deal with premium payments and renewals, as an employee covered under the Mediclaim policy for employees, you do not have to worry about any of the above-mentioned processes. Your employer or a dedicated team will make sure that the premium amount is automatically deducted from your salary and you get insurance coverage during the entire length of service/employment with the organization, unless your employer sponsors the health cover for you himself, then there will be no salary deduction in that case.  

The Downsides 

There are a few downsides too when you are covered under the group insurance policy for employees. One of the major drawbacks is the inability to customise the policy plan to match the unique medical needs of you and your family members. You must accept the medical insurance policy in the form presented to all employees by the employer. In any case, most organisations make sure that their employees get the best possible coverage at competitive prices. 

Another major disadvantage of a group Mediclaim policy is that it can end with your employment term with the organisation. You cease to enjoy the cover the moment you end your association with the organisation, regardless of whether you are fired, resign or retire. It can put you in a risky situation, as you will be without any health insurance cover abruptly. 

Conclusion 

Now that you know almost everything about Mediclaim policy for employees, including its benefits, advantages, and disadvantages, make sure you make the best use of the cover. If needed, you may also invest in an additional plan as a backup in case you lose your job unexpectedly.